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NewsLow wages and high living costs 'making life tougher in the UK'
Low wages and high living costs 'making life tougher in the UK'
Posted by Emily Jones
The gap between the minimum wage and the cost of living has widened, according to new research.
Many people on low incomes are struggling to generate enough cash to pay for basic living necessities, if a study published by the Joseph Rowntree Foundation (JRF) is anything to go by.
It found that inflation rates will be higher for those on low incomes than was previously indicated in the Budget, which specified that the Consumer Prices Index will be the basis for analysing benefits.
The JRF findings showed that people out of work could be worse off under the policy, while single workers will need to generate a minimum of £14,400 a year in order to meet basic living costs - compared with £13,400 two years ago.
A family with two children will need to generate at least £29,200.
The news comes after a spokeswoman for Moneyfacts.co.uk suggested that credit card interest rates may continue to rise.
06/07/2010 17:37
News category: Employment